Consumer Decision Making Process

Consumer Decision Making Process

1. 1) need recognition + problem awareness- difference between actual and desired state- triggered by internal/ external states. (Blackwell et al, 2001)

   • Behavioural- consumer simply influenced by environmental cues.

2. A 'grand model'- criticisms of grand models (Karimi, 2013) :

   • These models omit the interrelation of the elements which is unrealistic
   • These models are incredibly linear and omit the possibility of repeating or skipping a stage
   • These models have a very positive approach- they do not use the customer perspective. Considering the paradigm shift towards a 'customer centricity' focus, these models seem less relevant.

3. Ashman et al (2015)- investigated whether grand models were still relevant in todays co-creation/ participary culture (e.g. socal media). They claimed that sequance and length of each stage had been influenced by socialisation/ digitalisation. Some stages more time efficient, some less. Some may be repeated, skipped.

4. Ewerhard et al, (2019)

   • Internet has made decision making more complex- retailer no longer only source of information- there has been a definite shift towards dynamic models.
   • The non-linearly. of decision-making in a multi-channel context is important

5. 2) info search- consumer aroused to search for more information... what may influence the extent of search consumer does?

   • Central v. peripheral route: (Petty and Cacioppos)- central: careful, thoughtful etc (SMCG), peripheral little elaboration (credibility, familiarity) (FMCG).
   • Determinants of the extent of problem-solving (Jobber, 2001): time pressure, differentiation/ number of alternatives, level of involvement (which is in turn affected. by self-image, perceived risk, social factors, hedonism).
   • Moderators- simple- complex goods, high- low risk goods, consumers personality ( Killic et al, 2015)

6. High versus Low Involvement Purchases

   • High Involvement (Fishbein + Ajzen, 1977) high involvement purchases take into acount ones SELF (personal beliefs + attitudes versus OTHERS (normative beliefs and subjective norms)... this leads to purchase intentions and ultimately the purchase decision.
     • High involvement purchases more likely for SMCG, high risk purchases, take a central route, complex purchases.
     • Rodney + Douglas (1977)- an attitude is a learned predisposition to respond in a consistently favourable or unfavourable manner... attitudes come from beliefs and in turn yield intentions and ultimately behaviour.
     • Hill (1977) suggests that consumers have 'attitudinal unidimensionality', and whilst they may believe in something, this may not ultimately yield behaviour... e.g. green purchase intentions v. behaviour
       • 30% of those who identify as ethically orientated in their consumption fail to translate this into purchasing behaviour (Shaw, 2015)
   • Low Involvement (Ehrenberg and Goodhart) repeat purchase model- behaviour is habitual (perhaps mention derived from operant behaviouralism Fox, 1993), consumer does not seek information, they are passive recievers, often any option from the evoked set is suitable. (relevant for FMCG, use peripheral info search route)
     • Awareness -> trial -> repeat purchase.
     • If linked to F + A... in these situations awareness precedes behaviour, which precedes attitude... there are little to no advanced attitudes about the subject)
   • How to deal with high/ low involvement- (Ellis- Chadwick, 2016)
     • HIGH: marketing needs to provide sufficient information about a product, high information will prompt consumers to end their info search there... channel of info search + purchase are not exclusive of eachother (Killic et al, 2015).
     • LOW: gain top of mind awareness through the reinforcement of brand name/ message... do not aim for deeper beliefs as awareness and trial precede this... be in inert set and appeal to impulses.

7. 3) Evaluation of alternatives: Total set is all alternatives- consumer is aware of inert set, customers are willing to consider purchasing the evoked set (which is split into the retrieval set and prominent products in the environment... perhaps credible, familiar... link to peripheral route P + C) Consider what type of good.

8. 4) Purchase Decision- two factors can intervene here: attitudes of others, unexpected situational factors.

9. 5) Post-purchase evaluation- action based on satisfaction/ dissatisfaction), determined by the relationship between consumer's expectation and actual product performance.

   • Cognitive dissonance can be minimised by improving the consumer experience... make sure the PACKAGE of product and services (e.g. customer support) is strong. Minimise negative e-WOM.
   • Depending on consumers feeling here, this is where the feedback loop may come into play/ if this is a low-involvement purchase, where the decision will be made as to the consumers future behaviour.